This copy is for your personal non-commercial use only. To order presentation-ready copies of Toronto Star content for distribution to colleagues, clients or customers, or inquire about permissions/licensing, please go to: www.TorontoStarReprints.com

Hand over your tips or else, posh Muskoka hotel warns staff

The posh Marriott beach resort in Muskoka is threatening to fire spa staff unless they agree to give almost half their tips to the hotel.

The hotel &mdash; where rooms start at $269 per night &mdash; maintains the clawback
is necessary &ldquo;to efficiently manage our costs and to remain competitive
within the industry.&rdquo;

The resort's new policy will see its spa customers charged a higher 20 per cent gratuity on their manicures, body wraps and other services.

By Rob FergusonQueen's Park Bureau

Wed., June 27, 2012

A posh Marriott beach resort in Muskoka is threatening to fire spa staff who won’t fork over almost half their tips to the hotel — just as Premier Dalton McGuinty seeks a ban on “tipping out” to the boss.

The ultimatum, detailed in a letter obtained by the Star, will see spa customers at the Rosseau Muskoka near Port Carling charged a higher 20 per cent gratuity on their manicures, body wraps, massages and other treatments with 50 per cent of the tip going to staff who perfom the hands-on services.

“Should continuing your employment with The Rosseau . . . under this new policy not be acceptable to you, your employment will terminate at the end of the four-week period as outlined in this letter,” hotel general manager Tony Tamburro wrote on June 11.

It was the same day New Democrat MPP Michael Prue (Beaches-East York) introduced a private members’ bill at Queen’s Park that caught the premier’s attention. The bill aims to outlaw owners and managers from taking a cut of workers’ tips.

“It’s a pay cut,” Prue said of the hotel’s demand, noting he has heard similar stories since bringing his bill forward.

Article Continued Below

In the three-page letter, the hotel — where rooms start at $269 per night — maintains the clawback is necessary “to efficiently manage our costs and to remain competitive within the industry.”

Staffers have another description.

“It’s kind of like blackmail,” said a spa worker at the hotel on Lake Rosseau, asking that her name not be used for fear she would be dismissed.

“Everyone feels disgusted. Morale is low.”

Tamburro referred a call from the Star to hotel spokeswoman Leah Leslie, who said she was not aware of the letter and would check with him before responding. A second call from the Star was not returned Tuesday.

Prue said he is shocked at the hotel’s approach.

“This is one of the most brazen examples I’ve ever seen where there’s a letter detailing it with the threat right in there,” he added.

The labour ministry said it is taking note of the situation at the Marriott, operated as a franchise by Canadian Niagara Hotels Inc., owner of several hotels in the Falls, since the hotel formerly known as Red Leaves went into receivership last year.

“We appreciate that this issue has been brought to our attention,” said Greg Dennis, spokesman for Labour Minister Linda Jeffrey.

“We have discussed the issue of tip-outs with Mr. Prue and recognize that Ontario workers deserve to be treated with respect by their employers.”

The government has pledged to meet with industry stakeholders as it develops its own legislation or works with Prue to fine-tune his bill.

“We look forward to continuing discussions aimed at ensuring a fair and balanced relationship between employers and employees,” Dennis added.

Under the new policy at The Rosseau Muskoka, the 20 per cent gratuity would see 10 percentage points go to the spa staff, 8.75 percentage points to the hotel and 1.25 percentage points to administrative associates in the spa.

If customers wish to tip more than the 20 per cent, the extra portion “will go in full to the associate specified by the guest,” states the policy, which also notes that the 13 per cent HST will be charged on the 20 per cent gratuity.

Under the Employment Standards Act, there is nothing to stop bosses from scooping tips from their employees. Prue’s proposal would amend the law to specify “an employer shall not take any portion of an employee’s tips or other gratuities.”

The restaurant industry maintains such a law would be tough to enforce and wade into a complex mix of tip-sharing arrangements that differ from one establishment to another.

More from the Toronto Star & Partners

LOADING

Copyright owned or licensed by Toronto Star Newspapers Limited. All rights reserved. Republication or distribution of this content is expressly prohibited without the prior written consent of Toronto Star Newspapers Limited and/or its licensors. To order copies of Toronto Star articles, please go to: www.TorontoStarReprints.com